Federal Court of Australia Upholds Enforcement of Intra-EU ICSID Awards Against Spain

On 29 August 2025, the Federal Court of Australia in <span class="news-text_italic-underline">Blasket Renewable Investments LLC v Spain [2025] FCA 1028</span> confirmed that four intra-EU ICSID arbitral awards against Spain are enforceable in Australia, collectively valued at around €500 million.

The awards arose from claims by investors from Luxembourg, the Netherlands and Jersey, who alleged that Spain’s retrospective reduction of renewable electricity tariffs breached the Energy Charter Treaty. ICSID tribunals found Spain liable and issued awards in favour of RREEF, 9REN, Watkins and NextEra. After unsuccessful annulment and revision attempts at ICSID, Spain resisted enforcement proceedings in Australia.

Spain argued state immunity under the Foreign States Immunities Act 1985 (Cth), invoked the CJEU’s decisions in Achmea and Komstroy (invalidating intra-EU arbitration clauses under EU law), raised EU state aid rules and challenged the validity of award assignments to Blasket. The European Commission also unsuccessfully sought to intervene in support of Spain’s position.

Justice Stewart dismissed these arguments. Relying on the High Court’s decision in <span class="news-text_italic-underline">Kingdom of Spain v Infrastructure Services Luxembourg Sarl [2023] 275 CLR 292</span>, the Court held that Spain’s accession to the ICSID Convention constituted a waiver of state immunity for recognition and enforcement proceedings, though not for execution. The Court reaffirmed that the ICSID regime is a closed system: absent annulment or stay under the convention, awards must be recognised and enforced upon presentation of an authentic certified award.

The judgment further held that:

• Australia, as a non-EU state, is unaffected by EU law and Spain’s ICSID obligations are erga omnes partes, not subject to modification by EU treaties.
• EU treaties could not modify or displace the ICSID Convention under the Vienna Convention on the Law of Treaties.
• Assignments of ICSID awards are valid under Australian law as choses in action, with no prohibition under international law.
• Sections 32–35 of the International Arbitration Act 1974 (Cth) are constitutionally sound and preserve the court’s role in verifying the authenticity of awards.

The decision underscores that Australia remains a reliable and creditor-friendly forum for the enforcement of ICSID awards, even in the face of complex intra-EU challenges.

<span class="news-text_medium">Case:</span> <span class="news-text_italic-underline">Blasket Renewable Investments LLC v Spain [2025] FCA 1028 (29 August 2025)</span> (Stewart J).‍